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Marketing Plan:Coca-Cola in 2015Matt CurdMatt CurdPage 1Marketing Plan
Purpose:In brief the purpose is to market a new innovative beverage packaging for Coca-Cola. The packaging has beendesigned around the brief ‘consider the creation of a new concept form of beverage packaging container for2015.’The Coca-Cola Company is one of the largest manufacturers, distributors and marketers of nonalcoholicbeverage concentrates and syrups in the world. Coca-Cola's headquarters are in Atlanta, Georgia, in America. Itis best known for its flagship product, Coca-Cola, and is one of the largest corporations in the United States.Today, Coca-Cola is an internationally recognized soft drinks company with ambitious plans to further grow thebrand. The company owns the majority of the soft drinks available in coolers and in vending machines in thewestern world. Some of these brands include, Coca-Cola and sub brands1, Dr Pepper, Fanta, Sprite, Oasis andPowerAde. A full list of Coca-Colas affiliated brands can be found on their corporate website2.The 2005 Annual Report states the company sells beverage products in more than 312 countries or territories.3The international presence of Coca-Cola is phenomenal and its logo, advertising and colours are among the mostrecognized in the world.Mission:Taken from thecoca-colacompany.comEverything we do is inspired by our enduring mission: To Refresh the World. in body, mind, and spirit.To Inspire Moments of Optimism. through our brands and our actions.To Create Value and Make a Difference. everywhere we engage.Coca-Cola’s product is the concentrate; this is sold to various licensed Coca-Cola bottling companies around theworld. The bottlers, who have contracts with the company, produce the finished product as we know it, in cansand bottles, combining the concentrate with filtered water and sweeteners.The bottlers sell, distribute and merchandise Coca-Cola in cans and bottles to different outlets such as stores andvending machines. Coca-Cola Enterprises is the largest Coca-Cola bottler in North America, Europe, Australiaand Asia. The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and food servicedistributors such as McDonalds. “One of our great strengths is our ability to conduct business on a worldwidescale while maintaining a local approach.”4Currently Coca-Cola is expanding its Diet Coke range, with a new "healthy soda" Diet Coke with Vitamins B6,B12, Magnesium, Niacin, and Zinc, marketed as "Diet Coke Plus". This is to appeal to an ever increasing marketfor healthier drinks as oppose to soft drinks with high amounts of sugar5.The soft drinks market is very competitive and Coca-Cola has had their share of success and failure stories withthe launches of new products. Most famously the female sale increase from Diet Coke’s TV adverts in the 90’s.1Appendix A, Coca-Cola, Coke and s/brandlist.html, Coca-Cola: List of 4/000104746906002588/a2167326z10-k.htm, Coca-Cola Company AnnualReport /aboutbottling.html Coca-Cola Company website: About Bottling5Healthy Eating and Drinking – UK Consumer Goods Intelligence, September 20072Matt CurdPage 2Marketing Plan
The largest of failures here in the UK though being the unsuccessful bottled water DeSani, which suffered badpress and was found to be similar to tap water, as oppose to all other bottled water in the UK which is springwater.6Marketing AuditSWOT AnalysisStrengths: Market leader in soft drinks.Coca-Cola has massive world appeal. The product's image is loaded with over-romanticizing, and this isan image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats,and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greateststrengths.7Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to conductbusiness on a global scale while at the same time maintaining a local approach. The bottling companiesare locally owned and operated by independent business people who are authorised to sell products ofthe Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, itsmain source of revenue is the sale of concentrate to its bottlers.Social Responsibility, sponsorship of UK Football Leagues, continual sponsorship of the Olympics.Coke MusicOther brands owned by the Coca Cola company that have a strong brand image.8Seasonal advertising awareness e.g. TV Christmas advert and summer advert.Weaknesses: Coca-Cola has effects on the teeth which is an issue for health care.It also has got sugar by which continuous drinking of Coca-Cola may cause health problems.Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effecton your body after few years.Brand market share makes Coca Cola direct competition for competitors and new competitors emergingin the market.Previous failed marketing strategies such as coke zero and Desani.Opportunities: 6789Opportunity to introduce new product onto market, marketing pullBrand recognition is the significant factor affecting Coke's competitive position.Coca-Cola's brand name is known well throughout 94% of the world todayThe primary concern over the past few years has been to get this name brand to be even better known.Packaging changes have also affected sales and industry positioning, but in general, the public hastended not to be affected by new products.9Need for ‘green business’ and sustainability in packaging business.Appendix M – Things Get worse for Coke, The .cmd/cs/.ce/7 0 A/.s/7 0 10D/ th/J 1 FL/ s.7 0 A/7 0 VO/ s.7 0 A/7 0 list.html, Coca-Cola: List of BrandsAppendix N – Coke seeks strategy to lift Zero, Marketing WeekMatt CurdPage 3Marketing Plan
Coca-Cola's bottling system also allows the company to take advantage of infinite growth opportunitiesaround the world. This strategy gives Coke the opportunity to service a large geographic, diverse area.Investment into developing countries.Opportunities to develop social responsibility in narrower demographics.Threats: Currently, the threat of new viable competitors in the carbonated soft drink industry is not verysubstantial.The threat of substitutes, however, is a very real threat. Possible substitutes that continuously putpressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate.Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changinghealth-consciousness of the market could have a serious affect. Of course, both Coke and Pepsi havealready diversified into these markets, allowing them to have further significant market shares and offsetany losses incurred due to fluctuations in the market.Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi and Cokehas produced a very slow moving industry in which management must continuously respond to thechanging attitudes and demands of their consumers or face losing market share to the competition.Furthermore, consumers can easily switch to other beverages with little cost or consequence. (Fastmoving goods)Matt CurdPage 4Marketing Plan
PEST AnalysisP E S T Education Secretary Ruth Kelly has announced her intention to ban junk food fromschool canteens and vending machines in England by next September.10More than a third of the waste paper and plastic collected by British local authorities,supermarkets and businesses for recycling is being sent 8,000 miles to China without anyknowledge of the environmental or social costs. The government insists that companieshave export licenses but few if any checks are made in British ports. The EnvironmentAgency admits that it is unable to check what is being exported.11Supporters of a pre-9pm watershed ban on junk food advertising are increasing pressureon the government through the introduction of another private member's bill. The bill,introduced by Labour MP Nigel Griffiths, is not only aiming to impose a pre-9pmwatershed ban on junk food advertising on TV but is also seeking "significantrestrictions" on non-broadcast marketing.12The value of the soft drinks market has benefited from growth since the late 80’s.Between 2001 and 2005 the value has increased 21.2%13Carbonates continue to account for more than half the soft drinks market in terms ofvalue, although their share fell from 60.3% in 2001 to 56.1% in 2005 as consumersswitched to other drinks for health reasons.14Interest rates cut 5.5% 15freeing up disposable income of mortgage owners, potentially intarget market (25-35 years) potential for fast moving consumer goods price increase. 16Market was worth 9.28bn (est.) in 2005, increase sales seen in hot summers in takehome sales.Health Problems concerned with sugar carbonated drinks, linked to child obesity17 andbad teeth. Children media exposure attacked for problem and advertising restrictionsmade as discussed in Political section.Channel 4 recently did a large exposé on Coca Cola child labour in El Salvador, couldalter buyer behavior as consumers have a increased interest in the source andmanufacture of products in regards to fair-trade and the environment.18Fairtrade and environmentally friendly packaging become increasing concern withincreased awareness of recycling. Consumers have become more inclined to purchasegoods sporting the Fairtrade logo.Sporting sponsorship deals provide links made to sport and health. The sponshorshipgives the brand a healthier appeal for consumers. Coca-Cola are a frequent sponsor of theOlympic games and in the UK sponsor the football leagues. (Coca Cola Championship,Coca Cola League 1 & 2)Reseal able coke can soon to be on sale in the UK as reported in the Mirror Oct-21-07‘Sprite Ice’ in testing; when opened a chemical in the drink turns a portion to ice.19Coke Music making a younger demographic more aware of the brand through anever increasing digital music market.Coca-Cola is launching a new lightweight bottle to reduce the amount of waste plastic.2010Appendix B, Clampdown on School Junk Food direct.gov.ukAppendix D, The UK’s new rubbish dump: China, The Guardian12Appendix G, Second bill seeks ban on junkfood ads, The Guardian13Appendix E, UK Market for soft drinks by value, Key Note14Appendix E, UK Market for soft drinks by value, Key Note15Appendix F, Intrest rates cut 5.5%, The Guardian16Appendix E, UK Market for soft drinks by value, Key Note17Appendix H, Fears about childhood obesity, BBC News18Appendix I, C4 accuses coke on child labour abuse, Marketing Week19Appendix J, Coke considering ‘Sprite with ice’ Marketing Week20Appendix K, Coca Cola unveils plans to cut plastic bottle waste, lifestyle.aol.co.uk11Matt CurdPage 5Marketing Plan
Marketing Plan:Objectives and StrategiesMarketing objectives follow: Change Coca-Cola’s brand image towards more global/local responsible attitude. Inform target audience about features and benefits of the new product. Boost sales based on the predicted overtaking of carbonated drinks by health drinks by 2015.Product DescriptionThe new beverage packaging is aimed at the Diet coke range of Coca-Colas product portfolio. It is a refillablebottle aesthetically styled to appeal to sports/fitness audience. The new beverage container is made fromsustainable sourced materials and production methods.The beverage container is unique in the way the consumer is encouraged to re-use/refill it. Being the first to offera new product feature is a proven competitive strategy. Future improvements to the product create the impressionthe company cares about satisfying its customers, material technology improvements in the future would furtherthe design.FeaturesBenefits Matt CurdSports/fitness designWhatever coke product has been put in thebottle by the dispensing unit the logo ispresent on the bottle.Ergonomically DesignedPage 6 Coke lifestyle connotationsHealth/fitness lifestyle connectionsFair-trade, sustainability, eco-friendlyconnections.Cheaper product in the long runMarketing Plan
Pricing StrategyOn the right is a marketing tool to workout pricing strategy. Coca-Cola have ahigh market share, competitor pressurehas forced customer sensitivity to priceto be fairly high, sales volume is ofcourse high and profit margin is fairlylow as the Coca-Cola products are fastmoving consumer goods. This points topenetration strategy.Penetration pricing means the setting oflower rather than high prices to achievepotentially dominant market share.This can only be done where demandfor the product is believed to be highlyflexible, basically demand is pricesensitive and either new consumers willbe attracted, or existing consumers willbuy more of the product because of alow price.A good penetration strategy may lead tolarge amount of sales and large marketshares.The strategy may also promote complimentary products. The main product may be priced low to attract sales,customers are then sold accessories. This strategy will work nicely in promoting re-use of Coca-Cola packagingvia a beverage holder of vessel which is purchased separately and refilled.The potential disadvantage of bringing in this strategy is the likelihood of competitors doing the same byreducing their prices, therefore damaging any advantage of the reduced price.Price Penetration is most appropriate in industries where standardization is important. The product that achieveshigh market penetration often becomes the industry standard, in regards to the new Coca-Cola beverage vessel, itis trying to create a standardization of how consumers use the beverage container. Coca-Cola are likely toreceive stiff competition soon after introduction of the product, although the product that achieves high marketpenetration often becomes the industry standard and other products, even superior products, becomemarginalized. Standards carry heavy momentum.Matt CurdPage 7Marketing Plan
Marketing CommunicationsThe following areas of the marketing communications mix will all belooked at to consider the relative strengths and weaknesses and if andhow they will be applied in the case of this plan.Advertising - Any paid form of non personal presentation andpromotion of ideas, goods, or services by an identified sponsor.Personal selling - Personal presentation by the firm’s sales force forthe purpose of making sales and building customer relationships.Sales promotion - Short-term incentives to encourage the purchase orsale of a product or service.Public relations - Building good relationships with the company’svarious publics by obtaining favorable publicity, building up a good"corporate image", and handling or heading off unfavorable rumors, stories, and events.Direct marketing - Direct communications with carefully targeted individual consumers to obtain an immediateresponse and cultivate lasting customer relationships.Advertising Form:Strengths/Weaknesses:Tools or tactics:Billboards Strengths: Seen by a largeaudience, hard to avoid, largepresence, people highly receptive. Weaknesses: Because its an oldform of advertising and so widelyused consumers learn to ignore it,doesn’t target audience.TV Adverts Strengths: Seen by a largeaudience, can be targeted onspecific programmes/channels,good communication device. Weaknesses: watershed on junkfood soon in place, Sky anddigital TV allows skipping ofadverts.Magazine/Newspaper Strengths: Target market specific,readers highly receptive. Weaknesses: consumers havelearnt that glossy magazines arefull of adverts and flick throughthem. Coke have incorporated interestingbillboards before, they frequentlyadvertise on the neon displays in bothPiccadilly Circus in London andTimes Square New York. They havealso used 3D billboards in the UnitedStates. 21 Unnecessary for productlaunch as consumers will probably bemore inclined and used to this form ofadvertising by 2015.Coke have good cult TV adverts, suchas their Christmas advert whichconsumers pay attention to seeingaround this time of year. Watershed onjunk food advertising will preventcurrent Coca-Cola products beingadvertised, like McDonalds though,The proposed idea will help combatthis and mean this form of advertisingis still viable.Advertising in lifestyle magazineswith any emphasis on sports, fitness,health and crossovers in cokeslifestyle image would be a viable formof advertising for the new product.21Appendix L – Examples of Coca-Cola BillboardsMatt CurdPage 8Marketing Plan
Public/Street Furniture Strengths: Seen by a largeaudience, events or places e.g.football stadium, good for brandassociation. Weaknesses: Not long timescale,needs to be updated frequently toattract audience. Not alwaysreaching targetContinue Coca-Cola’s sponsorship ofOlympics and UK football leagueswith emphasis on Coke’s range ofhealthier drinks. Good for brand imagelifestyle and looks better for coke’ssocial responsibility.Online advertising Strengths: Can be targeted onspecific websites, goodcommunication device, cheap Weaknesses: Email’s frombusinesses can be flagged asSPAM, Opportunities in socialnetworking sites for viraladvertising.In the form of email to subscribers,informing them on new product. TVstyle adverts can be directly sharedwith users on the social networkingsite YouTube and good adverts havecreated cult followings on the Videowebsites.As already said Coke is a massive global brand with huge brand awareness, the emphasis of advertising wouldbe on a TV advertising campaign which would be on the company website and virally spread on social videosites such as YouTube. The advert should gain cult status and in theory the target market will virally spread theadvert to friends in the same market. Consumers are highly responsive to videos they have chosen to watch onthe web. Reaching the target market through more sport sponsorship promotes cokes lifestyle image and the newhealthier product well.Personal SellingThe sales force needs to communicate with current distribution channels for Coca-Cola. Coca-Cola Enterprisecurrently distribute cooler fridges and vending units to community centres, sports halls and shops. These wouldbe replaced via a liquid dispensing vending unit which the distributor is likely to take on board because ofCoke’s market share. But due to Coca-Cola’s recent failures with DeSani22 and Coke Zero23 they might needmore incentives. Along with information on the benefits of switching units incentives based on Coke’ssponsorship deals could be offered such as free tickets to sporting events, such as football.2223Appendix M – Things Get worse for Coke, The GuardianAppendix N – Coke seeks strategy to lift Zero, Marketing WeekMatt CurdPage 9Marketing Plan
Sales PromotionForm:Price deal:A temporary reduction in price.Loyalty rewards program:Consumers collect points,miles, or credits for purchasesand redeem them for rewards.Coupons:Coupons have become astandard mechanism for salespromotions.On-line couponing:Coupons are available on line.Consumers print them out andtake them to the store.Online interactive promotiongame:Consumers play an interactivegame associated with thepromoted product.Contests/sweepstakes/games:The consumer is automaticallyentered into the event bypurchasing the product.Matt CurdStrengths/Weaknesses: Strengths: Great response in Fastmoving consumer goods where brandloyalty isn’t definitive. Weaknesses: Sales Volume might notreach desired target and profit marginsmight not meet requirements. Strengths: Provides incentive to bebrand loyal, new customersencouraged to switch brands to getreward. Weaknesses: advertising has to be inplace about the schemeTools or tactics:As the pricing strategy is penetrative thiswould be a well worthy promotion form.Loyal customers with the refillable bottlewill reap benefits of price reductioncompared to competitors because theywon’t be purchasing packaging. Strengths: Encourages customers topurchase an item they may not havebefore. Weaknesses: doesn’t encourage anyloyalty to the product.Coupons don’t fit into Coke’s brandimage and I think will be to old fashionedin 2015. Strengths: Seems more exclusive thanin store coupons, encourages usersonto company website. Weaknesses: Need distributor cooperationOnline coupons are much more accessiblethan regular coupons and the process ofgetting them online could be linked withCoke’s Digital Music store. Strengths: Keeps customer on website,likely to pass on to friend thereforeviral Weaknesses: Market specificpromotion,Interactive ads online make a niceexperience for the user, a flash gamecould allow users to experience the newvending method. Strengths: Good prizes are likely todraw repeat purchases to try again, Weaknesses: Large brands are likelyto put people off thinking theirchances of winning is lower.Contests linked with Coca-Colassponsorship companies, such ascompetitions for tickets to sportingevents.Page 10Marketing Plan
Public RelationsForm:Press Release:Regarding C4 accusations ofChild Labour.Press Release:Regarding child obesity,increasing need for healthdrinksStrengths/Weaknesses:Tools or tactics: Strengths: Increase brand imageappeal, show company to be sociallyresponsible Weaknesses: Can’t erase the past,Nike still suffer from employing sweatshop workers in the early 90’s Strengths: Increase brand imageappeal, show company to be sociallyresponsible Weaknesses: Hard to regain consumertrustProduce an article in broadsheet paper onCoca-Cola’s new product which issustainable on every front, materials,production and re-usable packaging.Showing Coke’s recognition of globalresponsibility to reduce CO2 emissions.Article in newspapers about Coke’s newDiet Coke product range with fitness andhealth in mind.Direct MarketingDirect marketing’s effectiveness can be measured directly. If Coke sent out one million mailadvertisements/promotions, and ten thousand customers can be tracked as having responded to the promotion,Coke can see the campaign led directly to the responses. Online promotions can be tracked and this would be inplace with Coca-Cola as discussed in the promotions plan.Action PlanStart Date(chronologically)Launch of new bottle in2015Completion Date(estimated)2-3 months after releaseAction & CommentsTV Advertising- Advertising should be focusgroup tested to ensure it will havethe impact it requires.ASAPNALaunch of new bottle in20152-3 months after releasePress Release- Coke should be looking atbringing out press releases in thenear future to portray a betterbrand social responsibility.Sales Promotion- Initial price reduction toincrease market share.4-5 months after releaseSales Promotion- Instant competition whenproduct purchase2 months after releaseMatt CurdPage 11ResourcesrequiredTo be specifiednearer the time of2015 whenfinancialforecasts areavailable.Marketing Plan
ConclusionThe marketing strategy for Coca-Cola’s new product will come into place in 2015, based on trends emergingnow this plan has identified the carbonated drinks market has probably peeked and likely to be overtaken byhealthier drinks as the market leader in the soft drinks market.Researching Coca-Cola’s product range has identified the Diet Coke range as the most likely, with marketingpull to still succeed in the future. The diet coke range has combats health concerns which are found in the CocaCola flagship product.Coca-Cola is all about buying into a lifestyle, and the new lifestyle in 2015 will much more health conscious. Inthis report I have shown reason for Coke to tie themselves up with sports sponsorship to promote a brand imageof health and fitness.The new beverage vessel is refillable in the hope of reducing pressure on landfill and showing coke as being aglobal and socially responsible company. The beverage container is styled to appear an essential for an active, fitlifestyle.Matt CurdPage 12Marketing Plan
Coca-Cola's product is the concentrate; this is sold to various licensed Coca-Cola bottling companies around the world. The bottlers, who have contracts with the company, produce the finished product as we know it, in cans . SWOT Analysis Strengths: Market leader in soft drinks. Coca-Cola has massive world appeal. The product's .
